StashAway Raises US$12 million in Series B Funding (We Look At Their 2 Years Performance)

StashAway has completed a US$12 million Series B funding round, led by Eight Road Ventures, the proprietary investment arm of Fidelity International and one of the earliest investors in Alibaba.

TL;DR: StashAway’s Total Funds Raised To USD$20.4 million With Recent Funding

Here’s a look at the significance of StashAway’s recent funding:

• Funds raised will be used for international expansion and aggressive product development

• A quote from Michele Ferrario, Co-founder and CEO of StashAway: “The financial backing from Eight Roads Ventures, one of the earliest investors in Alibaba, alongside the continued support of Asia Capital & Advisors, will accelerate additional investment product development for our clients in Singapore and Malaysia, while also supporting new market entry expansion throughout the APAC region and doubling down on financial education content development and distribution.

• A quote from Raj Dugar, Managing Partner Asia at Eight Roads Ventures: “The disjointed Southeast Asian wealth management landscape offers great potential to low-cost digital investment managers. StashAway is a regional pioneer in this sector, and we are impressed by the management team’s vision and execution. Their transparent pricing, robust investment methodology, and ease of use make for a compelling customer proposition.  We look forward to supporting StashAway as it continues to improve the way individuals throughout the region manage their money and build wealth.”

• Raj Dugar will join StashAway’s Board of Directors. He brings over fifteen years of leadership experience, including tenures at both The Carlyle Group and Goldman Sachs.

• Asia Capital & Advisors, the private equity firm led by Francis Rozario and Aaron Rozario, also participated for the third consecutive round. Asia Capital & Advisors invested in StashAway’s Pre-Series A and Series A.

• StashAway is also celebrating its 2nd year anniversary this month. Since it launched in July 2017, tens of thousands of people of 125 nationalities and living in 77 countries have opened an account and used the platform.

Chief Investment Officer: Our portfolios have been resilient through significant market volatility

Since July 2017, we have gone through 3 market corrections (defined as a 10-20% decline) and 2 pullbacks (defined as a 5-10% decline). But corrections are not the same as a bear market. Corrections are common in bull markets, and they are random, but they recover quickly. On the other hand, bear markets rarely start with a bang and they are almost always driven by substantial deterioration in the economy. That’s why during these corrections we have not changed our portfolios’ asset allocations, and we’ve recommended our customers to stay invested and continue to dollar-cost average, taking advantage of the lower prices.

2 Years Of Returns (Stashaway vs Benchmark Indexes)

In the first 24 months, our portfolios have returned cumulatively from 8.6% (lowest risk portfolio, equivalent to a portfolio of 10% equity and 90% government bonds) to 23% (highest risk portfolio, equivalent to a portfolio of 100% global equities). This is equivalent to 4% to 11% annual returns, depending on risk levels. Our balanced-risk portfolio, equivalent to 40% equity and 60% bonds (StashAway Risk Index 16%), has returned 12.9% in 2 years, with a 2.6% overperformance versus its same-risk benchmark.

Comparing with Benchmark Indexes

From July 2017 to June 2018, our lowest-risk portfolio, balanced portfolio, and highest-risk portfolio, returned 2.0%, 5.2%, and 13.6%, respectively. The respective same-risk benchmarks returned 1.8%, 4.5%, and 9.9%.

From July 2018 to June 2019, our lowest-risk portfolio, balanced portfolio, and highest-risk portfolio, returned 6.3%, 7.1%, and 8.1%, respectively. The respective same-risk benchmarks returned 5%, 5.4%, and 6.3%.

Here Are Some Community Reviews of Stashaway

Good Review(s):

“Been using StashAway since September 2018. I’ve gotta say their UI is 10/10. It is clean, simple and easy to use. Instructions on how to make transfers are clear and concise. Started off with 2 portfolios. 1st portfolio: Lump sum. 2nd portfolio: Initial lump sum with monthly $200 investment into the portfolio. Been a good 7 months. The first portfolio generated a return of 2.3% in SGD. While the second portfolio generated a return of 8.5% in SGD. IMHO, gold allocation is a little bit too high for slightly aggressive portfolios :(. If you do not have time to manage your investments and would like to try robo advisory out, I would recommend StashAway.”

Bad Review(s):

“Stashaway was the most overpromise, under-deliver app that I have been on. I put in 12k on a medium risk profile, and my return was 60 dollars on 12k after 8 months! To top it off they charge 8 dollars per month as fee to further eat into the return. I would be okay with all that because after all investments go up and down all the time but they even lack transparency. I asked them to give me a timeline chart of my returns so I can see how my investment performed over a period of time, and their Customer Service tells me that they can’t provide me a time series.”

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